The Rise Of Australasia

Capital from European Countries was focused on the New York Stock Market in the USA, although this delayed Australasia’s bottom-fishing plan considerably, it was not necessarily a bad thing.

After all, there were still many enterprises worth acquiring in Europe, and with the attention of European Nations all on the United States, it would facilitate Australasia’s acquisition actions in Europe.

Of course, such acquisition actions could not be hidden from the British. Arthur had no intention of hiding it from the British, after all, the capital from the United Kingdom was not something that Australasia could contend with at present.

This resulted in most of Australasia’s actions in Europe being located in Germany, with a few in other small and medium-sized countries, and almost no acquisitions in Britain.

This was also a form of interest exchange between Australasia and the British side, where Australasia would not get involved in the London Stock Exchange to gain support from the United Kingdom for its acquisitions in Germany and other countries.

The first target of Arthur’s acquisition of German enterprises was set on the BMW Group, which was currently experiencing severe funding issues.

The BMW Group was very well-known in later generations and was one of the famous BBA, which actually stands for BMW, Mercedes, and Audi.

As Australasia already owned Mercedes, owning BMW would mean having more than half of the three major automotive companies.

Of course, Audi Group was also within the targets of this acquisition. However, compared to BMW, which had already faced severe funding problems, acquiring Audi would be more difficult.

On May 1, 1927, Australasia’s intelligence personnel successfully visited the BMW Group and met with the helmsman of the BMW Group,

Franz Josef Popp.

Of course, BMW’s current expertise was not cars but rather engines used in aerospace.

As early as ten years ago, the engine factory named after its founder, Karl Friedrich Rapp, became famous in Bavaria for manufacturing high-performance engines.

Over these ten years, the engine factory had merged with both Gustav Otto’s Flugmaschinenfabrik and Bayerische Flugzeugwerke, formally becoming what people know today as BMW.

However, due to excessive expansion leading to poor management in 1917, Karl Friedrich Rapp, the founder of BMW, had no choice but to sell his shares and leave the scene despondently.

Rapp’s shares were taken over by the Austrian financier Franz Josef Popp and had been maintained until now.

The person representing the Royal financial group in charge of the acquisition was Chief David.

On a sunny noon, Franz Josef Popp and David met in the BMW company’s Meeting Room and had a long conversation.

Franz Josef Popp was clearly prepared for Chief David’s visit and even knew the intention of his arrival.

Chief David got straight to the point and directly expressed his intention to acquire BMW.

Seeing Chief David’s directness, Franz Josef Popp was clearly stunned for a moment, but he still tried to negotiate for the best interest, "Chief David, as you know, the BMW company is the largest engine factory in Bavaria, and the airplane engines we produced have even set world records.

Although we are currently facing a crisis with our capital chain, the company’s market value has not dropped too much. I am not against Chief David’s acquisition proposition, but considering the interest of the enterprise, I request Chief David to offer a more suitable price."

In line with the information collected by the Intelligence Department, Franz Josef Popp was not at all opposed to the acquisition of his shareholdings in BMW.

After all, Franz Josef Popp was an Austrian, and the Vienna Stock Market had suffered significant impacts. Franz Josef Popp must have incurred substantial losses in the Vienna Stock Market, which was the real reason for BMW’s funding issues.

Naturally, the collapse of the German economy, resulting in a significant reduction in orders, also played a role. BMW’s main business at the moment was engines, and engines had only two uses – military and civilian. Continue your saga on novelbuddy

With substantial restrictions imposed on the German government, it naturally couldn’t continue researching airplanes. Nor could the German People delve into airplane experiments during an economic crisis, leaving BMW, which had lost foreign orders, in a severe loss, with bankruptcy being only a matter of time.

Since he already knew the bottom line of Franz Josef Popp, Chief David was naturally not anxious and responded with a smile, "Of course, that is understandable, Mr. Popp. Out of respect for the interests of both parties, I believe the acquisition should be carried out slowly to ensure that neither side suffers significant losses.

If you agree, we can conduct a three-month investigation, thoroughly assessing the current market value of BMW.

If BMW’s market value shows an upward trend, we can purchase BMW at a slightly higher price than the market rate.

That way, you won’t suffer losses, fulfilling our acquisition needs without forcing you into an unprofitable deal."

Looking at Chief David’s calm and smiling face, Franz Josef Popp’s expression changed as he immediately realized the other party was aware of his predicament.

Three months is neither particularly long nor short, yet whether BMW can survive these three months is indeed a question.

Even if the opposition is intent on targeting, BMW could very well face bankruptcy within these three months, by which time its market value would significantly decrease, and the loss would be even more severe.

Looking at Chief David, who had stopped speaking, Franz Josef Popp understood that the other party had grasped his vulnerability, which was well aware that BMW was in danger due to a broken financial chain, and he now had the initiative.

Franz Josef Popp smiled sheepishly and took the initiative to say, "There’s no need for that, Chief David. The current market value of BMW is about 300,000 pounds. If you are willing to offer 350,000 pounds, I can sell all shares of BMW to you."

Chief David shook his head with a smile upon hearing this and said, "Honestly, Mr. Franz, a price of 350,000 pounds is simply impossible.

Not to hide it from you, the royal financial group has acquired Boeing in the United States, and the total cost was only about 2 million US dollars.

The current BMW only has the capacity to produce engines, and the price of 150,000 pounds is already the highest we can offer."

After all, BMW is currently just an aviation engine manufacturer and has not yet branched out into other areas of business.

Both Boeing and Douglas have the capacity to produce airplane engines, and with the existing Diesel Engine Laboratory in Australasia, BMW’s engine production is not that critical for Australasia, even though it might currently be the most valuable asset of BMW.

Hearing the other party say this, Franz Josef Popp had already given up the plan of making a big profit from this share sale.

However, whatever one might say, BMW’s design and production capabilities in airplane engines are still quite excellent, which is evident from its fame throughout Bavaria.

The German industry as a whole is not weak, and even with severe restrictions, it cannot hinder the excellent research and development capabilities of German industry.

Of course, with a large number of German talents being recruited to Australasia, the industrial research and development abilities of Australasia are also constantly rising.

Although no giant private enterprises have been born, there are already many small and medium-sized private enterprises, and engines are not unexplored territory.

"300,000 pounds, Chief David," Franz Josef Popp said through gritted teeth. "That’s the market value of BMW, and I am willing to sell it to you at market price."

"200,000 pounds," Chief David stated blandly. "BMW is facing severe financial chain issues and some financial losses.

By acquiring it for 200,000 pounds, we will need to spend at least another 50,000 pounds to fill the financial gaps and cover the financial losses.

That should be enough, and compared to what you spent on buying BMW, you have already made a lot, and it will ensure your company gets safely through this economic crisis."

The fundamental reason why BMW has not yet been acquired is the broken financial chain and debt it is burdened with.

There are still many engine companies in Germany, and after the war, Britain and France also transferred a considerable portion.

This has led to many European nations, including the British and French, having little interest in small engine manufacturers like BMW; naturally, they are not likely to purchase BMW at a high price and help it pay off its debts.

"250,000 pounds, Chief David," Franz Josef Popp named his price again, and this was the lowest price he could accept.

Besides, the financial chain problem that BMW faced had also appeared in his own company, and Franz Josef Popp urgently needed the funds from selling BMW to fill the financial gaps in his own firm.

Compared to the midway-acquired BMW, Franz Josef Popp clearly had a deeper attachment to his own company and did not wish it to go bankrupt.

After all, as a well-known Austrian financier, his fortune was primarily earned through his own company.

While other companies can be acquired again, if his original one was lost, making a comeback would be considerably difficult.

"No problem," Chief David nodded indifferently but set other conditions, "But you must help us relocate BMW to Australasia. Also, I hope you can use BMW’s and your reputation to help us extensively recruit workers and technical talents from Germany.

If these two tasks are well accomplished, I won’t mind assisting your company through this difficulty, and even in merging other small companies, to become a financial giant in Austria."

This chapt𝒆r is updated by frёewebηovel.cѳm.

It would certainly be more efficient for these Germans to recruit talents with the help of their own kind, who are more familiar to them, rather than Australasia recruiting on its own.

As for whether these capitalists are willing or not, in the face of ample benefits, capitalists do not have room for anything but money in their eyes.